Until just recently, if you filed a bankruptcy or lost a home to foreclosure or completed a short sale, the FHA had a fairly lengthy waiting period for you to be eligible for FHA financing for the purchase of another home. If you filed a Chapter 7 bankruptcy, you would have had to wait for two years after it was discharged. If you did a short sale or were foreclosed, you would have to wait three whole years before you could get another FHA loan.
Now, however, those rules have changed. Under the new Back to Work - Extenuating Circumstances Program, you only have to wait one year if you qualify. Do you qualify? Here are some of the criteria:
1. You must have had significant (20% or more) reduction in household income for at least six month, resulting from loss of employment or some circumstance beyond your control. This qualifies as an "Economic Event".
2. Your lender must determine that your earlier financial and credit issues were based on the Economic Event, and that you have now recovered.
3. Your credit must be satisfactory for at least the last 12 months.
4. You must have completed housing counseling.
A new home might be closer than you think!
Thursday, October 31, 2013
Friday, October 25, 2013
Do You Have Grounds for a Property Tax Appeal?
No one ever thinks their real estate tax bill is fair when it comes out. But to determine whether or not you might successfully appeal your taxes in Cook County, look at these things:
1) Check the description of your property. If the county thinks your house is bigger than it is, you have a good shot at appeal. Make sure you can provide blueprints or a survey or an appraisal that shows the size of your home. Of course, if the county thinks your home is smaller than it is, it's probably assessed less than it should be anyway.
2) If your home has been damaged -- water, fire, any kind of significant damage -- that was not accounted for when it was assessed, you can appeal based on that.
3) If your home is in an exceptionally undesirable location (and no, not being able to stand your neighbors doesn't qualify as exceptionally undesirable), you could use that as a basis for appeal.
4) Go online and do some research. If other homes in your area that are about the same size as yours are assessed at least 10% less, you have a basis to appeal. Ideally, these other homes need to be in your neighborhood and have the same neighborhood and property class codes in the county assessor's system.
5) If you recently bought your home, and if it wasn't a short sale or a foreclosure when you purchased it, you can use the HUD or Closing Statement from your closing to show the assessed value should be less than what the county thinks it is.
Of course, you could meet all five of these criteria and still not get your assessed value reduced, but I do think it's worth a shot!
1) Check the description of your property. If the county thinks your house is bigger than it is, you have a good shot at appeal. Make sure you can provide blueprints or a survey or an appraisal that shows the size of your home. Of course, if the county thinks your home is smaller than it is, it's probably assessed less than it should be anyway.
2) If your home has been damaged -- water, fire, any kind of significant damage -- that was not accounted for when it was assessed, you can appeal based on that.
3) If your home is in an exceptionally undesirable location (and no, not being able to stand your neighbors doesn't qualify as exceptionally undesirable), you could use that as a basis for appeal.
4) Go online and do some research. If other homes in your area that are about the same size as yours are assessed at least 10% less, you have a basis to appeal. Ideally, these other homes need to be in your neighborhood and have the same neighborhood and property class codes in the county assessor's system.
5) If you recently bought your home, and if it wasn't a short sale or a foreclosure when you purchased it, you can use the HUD or Closing Statement from your closing to show the assessed value should be less than what the county thinks it is.
Of course, you could meet all five of these criteria and still not get your assessed value reduced, but I do think it's worth a shot!
Monday, October 21, 2013
Lawsuit Alleges Foreclosure Law Violations by Lender-Hired Company
If you were thrown out of your house pending a foreclosure case, this might interest you: The Illinois Attorney General recently filed a suit against Safeguard Properties, a large national company that maintains foreclosed properties for lenders. According to the Illinois Attorney General's office, more than 200 homeowners have complained that Safeguard Properties wrongfully removed their personal property from their homes, even though the homes had not yet been foreclosed, and even had their utilities shut off.
Moreover, Safeguard Properties supposedly told homeowners they could not continue to live in their homes pending foreclosure. Under state law, homeowners are allowed to stay in their homes until the foreclosure process is complete.
The suit also alleges that Safeguard told tenants of properties in foreclosure that they must also vacate. Again, this is a violation of state law, which allows tenants to remain in possession until their lease ends, even if the lease ends after the foreclosure is complete.
Safeguard has announced its intention to defend this suit vigorously. It remains to be seen what happens!
Moreover, Safeguard Properties supposedly told homeowners they could not continue to live in their homes pending foreclosure. Under state law, homeowners are allowed to stay in their homes until the foreclosure process is complete.
The suit also alleges that Safeguard told tenants of properties in foreclosure that they must also vacate. Again, this is a violation of state law, which allows tenants to remain in possession until their lease ends, even if the lease ends after the foreclosure is complete.
Safeguard has announced its intention to defend this suit vigorously. It remains to be seen what happens!
Monday, October 7, 2013
Changes to Loan Modification Policies
After numerous complaints by homeowner's struggling to be compensated or have their loans modified pursuant to the $25 million national mortgage foreclosure settlement, the settlement's monitoring committee finally announced some changes last week. It turns out there are a whopping 304 standards that the banks are supposed to be following, but compliance has been slim
Pursuant to the changes announced last week, all five banks affected by the settlement (Bank of American, JP Morgan Chase, Citigroup, Wells Fargo and Ally/GMAC), will give homeowners 60 days to submit additional loan modification documents before the home goes into foreclosure. Generally, the banks have also stated they will provide better oversight of their employees.
Additionally, Bank of America and Wells Fargo have agreed to the following additional policies: 1) They will have to provide specific information about missing documentation to homeowners. For example, instead of saying they never received "X document", or "X document" is missing, they will have to specify if the document was received but is defective for some reason (i.e. it's not completely filled out, it's not signed, it's not dated, etc.); 2) They will escalate the application of any borrower who has repeatedly been requested to submit the same paperwork; and 3) They will create an online system to communicate directly with housing counseling agencies.
Pursuant to the changes announced last week, all five banks affected by the settlement (Bank of American, JP Morgan Chase, Citigroup, Wells Fargo and Ally/GMAC), will give homeowners 60 days to submit additional loan modification documents before the home goes into foreclosure. Generally, the banks have also stated they will provide better oversight of their employees.
Additionally, Bank of America and Wells Fargo have agreed to the following additional policies: 1) They will have to provide specific information about missing documentation to homeowners. For example, instead of saying they never received "X document", or "X document" is missing, they will have to specify if the document was received but is defective for some reason (i.e. it's not completely filled out, it's not signed, it's not dated, etc.); 2) They will escalate the application of any borrower who has repeatedly been requested to submit the same paperwork; and 3) They will create an online system to communicate directly with housing counseling agencies.
Monday, September 30, 2013
Hardest Hit Program Deadline is Today!
If you were planning on applying to the state's Hardest Hit Program for mortgage assistance, you'd better hurry up. The deadline is today.
When the program started in 2011, eligible homeowners could qualify for up to $25,000 in assistance, although that number was increased to $35,000 earlier this year. Nearly 15,000 people have applied, and almost 60% of those who applied received some assistance. Nearly $122 million were paid out. The good news is that most homeowners who qualified and received assistance continued to own their homes 6 months later.
Based on the information we have now, it appears the program was successful. For more information and to see if you might qualify, click here. If you do apply, act quick. The deadline is today, September 30, 2013.
When the program started in 2011, eligible homeowners could qualify for up to $25,000 in assistance, although that number was increased to $35,000 earlier this year. Nearly 15,000 people have applied, and almost 60% of those who applied received some assistance. Nearly $122 million were paid out. The good news is that most homeowners who qualified and received assistance continued to own their homes 6 months later.
Based on the information we have now, it appears the program was successful. For more information and to see if you might qualify, click here. If you do apply, act quick. The deadline is today, September 30, 2013.
Sunday, September 29, 2013
Changes to Cook County Human Rights Ordiannce
Recently, the Cook County Human Rights Ordinance was modified to prevent landlords from discriminating against tenants using Section 8 or any other housing choice voucher income to pay their rent. Effective August 8, 2013, a landlord can no longer turn down a prospective tenant solely on the basis that the rent will be paid through Section 8 income.
The new rule applies to all landlords -- whether they are leasing a house, a condo, a townhouse, a duplex or an apartment building. The only landlords exempt from the provisions are those who are renting one or more rooms in a home that they themselves occupy.
The ordinance applies everywhere in Cook County except where a local municipality has its own ordinance, in which case the local ordinance prevails. If you are not sure what the rule is in your town, contact your local village hall or city hall for more information.
The new rule applies to all landlords -- whether they are leasing a house, a condo, a townhouse, a duplex or an apartment building. The only landlords exempt from the provisions are those who are renting one or more rooms in a home that they themselves occupy.
The ordinance applies everywhere in Cook County except where a local municipality has its own ordinance, in which case the local ordinance prevails. If you are not sure what the rule is in your town, contact your local village hall or city hall for more information.
Friday, September 13, 2013
Energy Use Disclosure Required For Chicago Building Owners
Pursuant to a new law passed recently by the Chicago City Council, the owners of approximately 3,500 buildings in Chicago will be required to disclose how much energy they use. The goal of this new ordinance is to increase energy efficiency.
The disclosures will then be compiled and scored, and the scores will be public information. If a building's score is poor, they may have trouble finding tenants or buyers. On the other hand, if the building scores well, it could be an added marketing benefit for that building's owners, perhaps helping to lure new tenants and buyers.
The new ordinance covers buildings 50,000 square feet and up. If you have a commercial building greater than 250,000 square feet, the reporting requirement kicks in for you in June 2014. If you have a commercial building that is between 50,000 and 250,000 square feet, you must start reporting in June 2015. Residential buildings are subject to the new ordinance also, but they have an extra year to comply.
The disclosures will then be compiled and scored, and the scores will be public information. If a building's score is poor, they may have trouble finding tenants or buyers. On the other hand, if the building scores well, it could be an added marketing benefit for that building's owners, perhaps helping to lure new tenants and buyers.
The new ordinance covers buildings 50,000 square feet and up. If you have a commercial building greater than 250,000 square feet, the reporting requirement kicks in for you in June 2014. If you have a commercial building that is between 50,000 and 250,000 square feet, you must start reporting in June 2015. Residential buildings are subject to the new ordinance also, but they have an extra year to comply.
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